Uflex eyes Rs 9,000 crore turnover by FY20 on domestic push

In the next 2-3 years, the company expects the domestic packaging business to contribute 80 percent to its overall turnover.

Packaging solutions firm Uflex is aiming at Rs 9,000 crore turnover in the next three years, a growth of nearly 40 percent over the previous fiscal, on the back of robust domestic business, a top company official said.

In the next 2-3 years, the company expects the domestic packaging business to contribute 80 percent to its overall turnover. "By 2019-20, we should look at top line of Rs 9,000 crore, which at the end of FY17 was Rs 6,500 crore," Uflex Group President (Finance and Accounts) Rajesh Bhatia told PTI.

Asked which business segment will be the growth driver, he said: "We are looking at more growth coming from the packaging business... we have just commissioned our Sanand Gujarat plant for aseptic packaging and our hologram business is also expanding in Jammu."

Apart from packaging products and films, Uflex has presence in chemicals, engineering and holography. Packaging products and packaging film businesses contribute equally to the company's overall turnover. However, in overseas markets, it is into packaging films only.

"Contribution from the packaging products business would go up. In two years, we would make it 80:20," Bhatia said.

Uflex has invested Rs 580 crore at Sanand-based aseptic liquid packaging manufacturing plant and is in the midst of trials with companies in the segment.

"Delivery would start from the last quarter of this year and from the next year, we would have about 60 percent capacity utilisation," he said.

The plant has a capacity to roll out 3.5 billion packs per year and it could be doubled with additional investment of Rs 75 crore. Based on market conditions, its capacity could be expanded after 2018-19, Bhatia said.

The company, he said, is also focusing on liquid packaging segment, which is currently led by Swiss firm Tetra Pack here. It is currently valued at around Rs 1,800 crore, growing at 20 percent annually.

"Initially, we would be happy to have 30 percent market share by 2019-20," Bhatia added.

On future investments, he said normally the company earmarks capex of around Rs 150 crore annually.

Headquartered in Noida, Uflex has manufacturing facilities in India, the UAE, Mexico, Poland, Egypt and the US. It provides flexible packaging solution in the US, Canada, South America, the UK, Europe, Russia, CIS countries, Africa, the Middle-East and South Asian nations.